What changed, Directive 2006/49/EC

+ ## Section 1 / **Subject matter and scope**
− ### art_1
+ ### Article 1
− Article 1
+ ### Article 2
− ### art_2
− 
− Article 2
+ (a) every reference to credit institutions shall be construed as a reference to investment firms;
− | (a) | every reference to credit institutions shall be construed as a reference to investment firms; |
− | --- | --- |
+ (b) in Articles 125 and 140(2) of Directive 2006/48/EC, each reference to other articles of that Directive shall be construed as a reference to Directive 2004/39/EC;
− | (b) | in Articles 125 and 140(2) of Directive 2006/48/EC, each reference to other articles of that Directive shall be construed as a reference to Directive 2004/39/EC; |
− | --- | --- |
+ (c) for the purposes of Article 39(3) of Directive 2006/48/EC, references to the European Banking Committee shall be construed as references to the Council and the Commission; and
− | (c) | for the purposes of Article 39(3) of Directive 2006/48/EC, references to the European Banking Committee shall be construed as references to the Council and the Commission; and |
− | --- | --- |
+ (d) by way of derogation from Article 140(1) of Directive 2006/48/EC, where a group does not include a credit institution, the first sentence of that Article shall be replaced by the following: ‘Where an investment firm, a financial holding company or a mixed-activity holding company controls one or…
− | (d) | by way of derogation from Article 140(1) of Directive 2006/48/EC, where a group does not include a credit institution, the first sentence of that Article shall be replaced by the following: ‘Where an investment firm, a financial holding company or a mixed-activity holding company controls on…
− | --- | --- |
+ ## Section 2 / **Definitions**
− ### art_3
+ ### Article 3
− Article 3
+ (a) ‘credit institutions’ means credit institutions as defined in Article 4(1) of Directive 2006/48/EC;
+ 
+ (b) ‘investment firms’ means institutions as defined in Article 4(1)(1) of Directive 2004/39/EC, which are subject to the requirements imposed by that Directive, excluding:
+ 
+ (i) credit institutions;
+ 
+ (ii) local firms as defined in point (p); and
+ 
+ (iii) firms which are only authorised to provide the service of investment advice and/or receive and transmit orders from investors without holding money or securities belonging to their clients and which for that reason may not at any time place themselves in debt with those clients;
+ 
+ (c) ‘institutions’ means credit institutions and investment firms;
− | (a) | ‘credit institutions’ means credit institutions as defined in Article 4(1) of Directive 2006/48/EC; |
− | --- | --- |
+ (d) ‘recognised third-country investment firms’ means firms meeting the following conditions:
+ 
+ (i) firms which, if they were established within the Community, would be covered by the definition of investment firm;
− | (b) | ‘investment firms’ means institutions as defined in Article 4(1)(1) of Directive 2004/39/EC, which are subject to the requirements imposed by that Directive, excluding:(i)credit institutions;(ii)local firms as defined in point (p); and(iii)firms which are only authorised to provide the servi…
− | --- | --- |
− | (i) | credit institutions; |
− | (ii) | local firms as defined in point (p); and |
− | (iii) | firms which are only authorised to provide the service of investment advice and/or receive and transmit orders from investors without holding money or securities belonging to their clients and which for that reason may not at any time place themselves in debt with those clients; |
+ (ii) firms which are authorised in a third country; and
− | (c) | ‘institutions’ means credit institutions and investment firms; |
− | --- | --- |
+ (iii) firms which are subject to and comply with prudential rules considered by the competent authorities as at least as stringent as those laid down by this Directive;
− | (d) | ‘recognised third-country investment firms’ means firms meeting the following conditions:(i)firms which, if they were established within the Community, would be covered by the definition of investment firm;(ii)firms which are authorised in a third country; and(iii)firms which are subject to …
− | --- | --- |
− | (i) | firms which, if they were established within the Community, would be covered by the definition of investment firm; |
− | (ii) | firms which are authorised in a third country; and |
− | (iii) | firms which are subject to and comply with prudential rules considered by the competent authorities as at least as stringent as those laid down by this Directive; |
+ (e) ‘financial instruments’ means any contract that gives rise to both a financial asset of one party and a financial liability or equity instrument of another party;
− | (e) | ‘financial instruments’ means any contract that gives rise to both a financial asset of one party and a financial liability or equity instrument of another party; |
− | --- | --- |
+ (f) ‘parent investment firm in a Member State’ means an investment firm which has an institution or financial institution as a subsidiary or which holds a participation in one or both such entities, and which is not itself a subsidiary of another institution authorised in the same Member State or of…
− | (f) | ‘parent investment firm in a Member State’ means an investment firm which has an institution or financial institution as a subsidiary or which holds a participation in one or both such entities, and which is not itself a subsidiary of another institution authorised in the same Member State o…
− | --- | --- |
+ (g) ‘EU parent investment firm’ means a parent investment firm in a Member State which is not a subsidiary of another institution authorised in any Member State or of a financial holding company set up in any Member State;
− | (g) | ‘EU parent investment firm’ means a parent investment firm in a Member State which is not a subsidiary of another institution authorised in any Member State or of a financial holding company set up in any Member State; |
− | --- | --- |
+ (h) ‘over-the-counter (OTC) derivative instruments’ means the items falling within the list in Annex IV to Directive 2006/48/EC other than those items to which an exposure value of zero is attributed under point 6 of Part 2 of Annex III to that Directive;
− | (h) | ‘over-the-counter (OTC) derivative instruments’ means the items falling within the list in Annex IV to Directive 2006/48/EC other than those items to which an exposure value of zero is attributed under point 6 of Part 2 of Annex III to that Directive; |
− | --- | --- |
+ (i) ‘regulated market’ means a market as defined in Article 4(1)(14) of Directive 2004/39/EC;
− | (i) | ‘regulated market’ means a market as defined in Article 4(1)(14) of Directive 2004/39/EC; |
− | --- | --- |
+ (j) ‘convertible’ means a security which, at the option of the holder, may be exchanged for another security;
− | (j) | ‘convertible’ means a security which, at the option of the holder, may be exchanged for another security; |
− | --- | --- |
+ (k) ‘warrant’ means a security which gives the holder the right to purchase an underlying asset at a stipulated price until or at the expiry date of the warrant and which may be settled by the delivery of the underlying itself or by cash settlement;
− | (k) | ‘warrant’ means a security which gives the holder the right to purchase an underlying asset at a stipulated price until or at the expiry date of the warrant and which may be settled by the delivery of the underlying itself or by cash settlement; |
− | --- | --- |
+ (l) ‘stock financing’ means positions where physical stock has been sold forward and the cost of funding has been locked in until the date of the forward sale;
− | (l) | ‘stock financing’ means positions where physical stock has been sold forward and the cost of funding has been locked in until the date of the forward sale; |
− | --- | --- |
+ (m) ‘repurchase agreement’ and ‘reverse repurchase agreement’ mean any agreement in which an institution or its counterparty transfers securities or commodities or guaranteed rights relating to title — to securities or commodities where that guarantee is issued by a recognised exchange which holds t…
− | (m) | ‘repurchase agreement’ and ‘reverse repurchase agreement’ mean any agreement in which an institution or its counterparty transfers securities or commodities or guaranteed rights relating to title — to securities or commodities where that guarantee is issued by a recognised exchange which hol…
− | --- | --- |
+ (n) ‘securities or commodities lending’ and ‘securities or commodities borrowing’ mean any transaction in which an institution or its counterparty transfers securities or commodities against appropriate collateral, subject to a commitment that the borrower will return equivalent securities or commod…
− | (n) | ‘securities or commodities lending’ and ‘securities or commodities borrowing’ mean any transaction in which an institution or its counterparty transfers securities or commodities against appropriate collateral, subject to a commitment that the borrower will return equivalent securities or co…
− | --- | --- |
+ (o) ‘clearing member’ means a member of the exchange or the clearing house which has a direct contractual relationship with the central counterparty (market guarantor);
− | (o) | ‘clearing member’ means a member of the exchange or the clearing house which has a direct contractual relationship with the central counterparty (market guarantor); |
− | --- | --- |
+ (p) ‘local firm’ means a firm dealing for its own account on markets in financial futures or options or other derivatives and on cash markets for the sole purpose of hedging positions on derivatives markets, or dealing for the accounts of other members of those markets and being guaranteed by cleari…
− | (p) | ‘local firm’ means a firm dealing for its own account on markets in financial futures or options or other derivatives and on cash markets for the sole purpose of hedging positions on derivatives markets, or dealing for the accounts of other members of those markets and being guaranteed by cl…
− | --- | --- |
+ (q) ‘delta’ means the expected change in an option price as a proportion of a small change in the price of the instrument underlying the option;
− | (q) | ‘delta’ means the expected change in an option price as a proportion of a small change in the price of the instrument underlying the option; |
− | --- | --- |
+ (r) ‘own funds’ means own funds as defined in Directive 2006/48/EC; and
− | (r) | ‘own funds’ means own funds as defined in Directive 2006/48/EC; and |
− | --- | --- |
+ (s) ‘capital’ means own funds.
− | (s) | ‘capital’ means own funds. |
− | --- | --- |
+ (a) ‘financial holding company’ means a financial institution the subsidiary undertakings of which are either exclusively or mainly investment firms or other financial institutions, at least one of which is an investment firm, and which is not a mixed financial holding company within the meaning of …
− | (a) | ‘financial holding company’ means a financial institution the subsidiary undertakings of which are either exclusively or mainly investment firms or other financial institutions, at least one of which is an investment firm, and which is not a mixed financial holding company within the meaning…
− | --- | --- |
+ (b) ‘mixed-activity holding company’ means a parent undertaking, other than a financial holding company or an investment firm or a mixed financial holding company within the meaning of Directive 2002/87/EC, the subsidiaries of which include at least one investment firm; and
− | (b) | ‘mixed-activity holding company’ means a parent undertaking, other than a financial holding company or an investment firm or a mixed financial holding company within the meaning of Directive 2002/87/EC, the subsidiaries of which include at least one investment firm; and |
− | --- | --- |
+ (c) ‘competent authorities’ means the national authorities which are empowered by law or regulation to supervise investment firms.
− | (c) | ‘competent authorities’ means the national authorities which are empowered by law or regulation to supervise investment firms. |
− | --- | --- |
+ ## CHAPTER II / ***Initial capital***
− ### art_4
+ ### Article 4
− Article 4
+ ### Article 5
− ### art_5
− 
− Article 5
+ (a) the reception and transmission of investors' orders for financial instruments;
− | (a) | the reception and transmission of investors' orders for financial instruments; |
− | --- | --- |
+ (b) the execution of investors' orders for financial instruments; or
− | (b) | the execution of investors' orders for financial instruments; or |
− | --- | --- |
+ (c) the management of individual portfolios of investments in financial instruments.
− | (c) | the management of individual portfolios of investments in financial instruments. |
− | --- | --- |
+ (a) such positions arise only as a result of the firm's failure to match investors' orders precisely;
− | (a) | such positions arise only as a result of the firm's failure to match investors' orders precisely; |
− | --- | --- |
+ (b) the total market value of all such positions is subject to a ceiling of 15 % of the firm's initial capital;
− | (b) | the total market value of all such positions is subject to a ceiling of 15 % of the firm's initial capital; |
− | --- | --- |
+ (c) the firm meets the requirements laid down in Articles 18, 20 and 28; and
− | (c) | the firm meets the requirements laid down in Articles 18, 20 and 28; and |
− | --- | --- |
+ (d) such positions are incidental and provisional in nature and strictly limited to the time required to carry out the transaction in question.
− | (d) | such positions are incidental and provisional in nature and strictly limited to the time required to carry out the transaction in question. |
− | --- | --- |
+ ### Article 6
− ### art_6
− Article 6
− 
+ ### Article 7
− ### art_7
− Article 7
− 
+ (a) initial capital of EUR 50 000;
− | (a) | initial capital of EUR 50 000; |
− | --- | --- |
+ (b) professional indemnity insurance covering the whole territory of the Community or some other comparable guarantee against liability arising from professional negligence, representing at least EUR 1 000 000 applying to each claim and in aggregate EUR 1 500 000 per year for all claims; or
− | (b) | professional indemnity insurance covering the whole territory of the Community or some other comparable guarantee against liability arising from professional negligence, representing at least EUR 1 000 000 applying to each claim and in aggregate EUR 1 500 000 per year for all claims; or |
− | --- | --- |
+ (c) a combination of initial capital and professional indemnity insurance in a form resulting in a level of coverage equivalent to that referred to in points (a) or (b).
− | (c) | a combination of initial capital and professional indemnity insurance in a form resulting in a level of coverage equivalent to that referred to in points (a) or (b). |
− | --- | --- |
+ ### Article 8
− ### art_8
− Article 8
− 
+ (a) initial capital of EUR 25 000;
− | (a) | initial capital of EUR 25 000; |
− | --- | --- |
+ (b) professional indemnity insurance covering the whole territory of the Community or some other comparable guarantee against liability arising from professional negligence, representing at least EUR 500 000 applying to each claim and in aggregate EUR 750 000 per year for all claims; or
− | (b) | professional indemnity insurance covering the whole territory of the Community or some other comparable guarantee against liability arising from professional negligence, representing at least EUR 500 000 applying to each claim and in aggregate EUR 750 000 per year for all claims; or |
− | --- | --- |
+ (c) a combination of initial capital and professional indemnity insurance in a form resulting in a level of coverage equivalent to that referred to in points (a) or (b).
− | (c) | a combination of initial capital and professional indemnity insurance in a form resulting in a level of coverage equivalent to that referred to in points (a) or (b). |
− | --- | --- |
+ ### Article 9
− ### art_9
− Article 9
− 
+ ### Article 10
− ### art_10
− 
− Article 10
+ ## CHAPTER III / ***Trading book***
− ### art_11
+ ### Article 11
− Article 11
+ ## CHAPTER IV / ***Own funds***
− ### art_12
+ ### Article 12
− Article 12
+ ### Article 13
− ### art_13
− 
− Article 13
+ (a) own funds as defined in Directive 2006/48/EC*,* excluding only points (l) to (p) of Article 57 of that Directive for those investment firms which are required to deduct item (d) of this paragraph from the total of items (a) to (c);
− | (a) | own funds as defined in Directive 2006/48/EC, excluding only points (l) to (p) of Article 57 of that Directive for those investment firms which are required to deduct item (d) of this paragraph from the total of items (a) to (c); |
− | --- | --- |
+ (b) an institution's net trading-book profits net of any foreseeable charges or dividends, less net losses on its other business, provided that none of those amounts has already been included in item (a) of this paragraph as one of the items set out in points (b) or (k) of Article 57 of Directive 20…
− | (b) | an institution's net trading-book profits net of any foreseeable charges or dividends, less net losses on its other business, provided that none of those amounts has already been included in item (a) of this paragraph as one of the items set out in points (b) or (k) of Article 57 of Directiv…
− | --- | --- |
+ (c) subordinated loan capital and/or the items referred to in paragraph 5 of this Article, subject to the conditions set out in paragraphs 3 and 4 of this Article and in Article 14; and
− | (c) | subordinated loan capital and/or the items referred to in paragraph 5 of this Article, subject to the conditions set out in paragraphs 3 and 4 of this Article and in Article 14; and |
− | --- | --- |
+ (d) illiquid assets as specified in Article 15.
− | (d) | illiquid assets as specified in Article 15. |
− | --- | --- |
+ ### Article 14
− ### art_14
− 
− Article 14
+ ### Article 15
− ### art_15
− 
− Article 15
+ (a) tangible fixed assets, except to the extent that land and buildings may be allowed to count against the loans which they are securing;
− | (a) | tangible fixed assets, except to the extent that land and buildings may be allowed to count against the loans which they are securing; |
− | --- | --- |
+ (b) holdings in, including subordinated claims on, credit or financial institutions which may be included in the own funds of those institutions, unless they have been deducted under points (l) to (p) of Article 57 of Directive 2006/48/EC or under Article 16(d) of this Directive;
− | (b) | holdings in, including subordinated claims on, credit or financial institutions which may be included in the own funds of those institutions, unless they have been deducted under points (l) to (p) of Article 57 of Directive 2006/48/EC or under Article 16(d) of this Directive; |
− | --- | --- |
+ (c) holdings and other investments in undertakings other than credit or financial institutions, which are not readily marketable;
− | (c) | holdings and other investments in undertakings other than credit or financial institutions, which are not readily marketable; |
− | --- | --- |
+ (d) deficiencies in subsidiaries;
− | (d) | deficiencies in subsidiaries; |
− | --- | --- |
+ (e) deposits made, other than those which are available for repayment within 90 days, and also excluding payments in connection with margined futures or options contracts;
− | (e) | deposits made, other than those which are available for repayment within 90 days, and also excluding payments in connection with margined futures or options contracts; |
− | --- | --- |
+ (f) loans and other amounts due, other than those due to be repaid within 90 days; and
− | (f) | loans and other amounts due, other than those due to be repaid within 90 days; and |
− | --- | --- |
+ (g) physical stocks, unless they are already subject to capital requirements at least as stringent as those set out in Articles 18 and 20.
− | (g) | physical stocks, unless they are already subject to capital requirements at least as stringent as those set out in Articles 18 and 20. |
− | --- | --- |
+ ### Article 16
− ### art_16
− Article 16
− 
+ (a) the illiquid assets referred to in Article 13(2)(d) shall be deducted;
− | (a) | the illiquid assets referred to in Article 13(2)(d) shall be deducted; |
− | --- | --- |
+ (b) the exclusion referred to in point (a) of Article 13(2) shall not cover those components of points (l) to (p) of Article 57 of Directive 2006/48/EC which an investment firm holds in respect of undertakings included in the scope of consolidation as defined in Article 2(1) of this Directive;
− | (b) | the exclusion referred to in point (a) of Article 13(2) shall not cover those components of points (l) to (p) of Article 57 of Directive 2006/48/EC which an investment firm holds in respect of undertakings included in the scope of consolidation as defined in Article 2(1) of this Directive; |
− | --- | --- |
+ (c) the limits referred to in points (a) and (b) of Article 66(1) of Directive 2006/48/EC shall be calculated with reference to the original own funds less the components of points (l) to (p) of Article 57 of that Directive as referred to in point (b) of this Article which are elements of the origin…
− | (c) | the limits referred to in points (a) and (b) of Article 66(1) of Directive 2006/48/EC shall be calculated with reference to the original own funds less the components of points (l) to (p) of Article 57 of that Directive as referred to in point (b) of this Article which are elements of the or…
− | --- | --- |
+ (d) the components of points (l) to (p) of Article 57 of Directive 2006/48/EC referred to in point (c) of this Article shall be deducted from the original own funds rather than from the total of all items as laid down in Article 66(2) of that Directive for the purposes in particular of Articles 13(4…
− | (d) | the components of points (l) to (p) of Article 57 of Directive 2006/48/EC referred to in point (c) of this Article shall be deducted from the original own funds rather than from the total of all items as laid down in Article 66(2) of that Directive for the purposes in particular of Articles …
− | --- | --- |
+ ### Article 17
− ### art_17
− Article 17
− 
+ (a) value adjustments made to take account of the credit quality of the counterparty may be included in the sum of value adjustments and provisions made for the exposures indicated in Annex II; and
− | (a) | value adjustments made to take account of the credit quality of the counterparty may be included in the sum of value adjustments and provisions made for the exposures indicated in Annex II; and |
− | --- | --- |
+ (b) subject to the approval of the competent authorities, if the credit risk of the counterparty is adequately taken into account in the valuation of a position included in the trading book, the expected loss amount for the counterparty risk exposure shall be zero.
− | (b) | subject to the approval of the competent authorities, if the credit risk of the counterparty is adequately taken into account in the valuation of a position included in the trading book, the expected loss amount for the counterparty risk exposure shall be zero. |
− | --- | --- |
+ ## Section 1 / **Provisions against risks**
− ### art_18
+ ### Article 18
− Article 18
+ (a) the capital requirements, calculated in accordance with the methods and options laid down in Articles 28 to 32 and Annexes I, II and VI and, as appropriate, Annex V, for their trading-book business; and
− | (a) | the capital requirements, calculated in accordance with the methods and options laid down in Articles 28 to 32 and Annexes I, II and VI and, as appropriate, Annex V, for their trading-book business; and |
− | --- | --- |
+ (b) the capital requirements, calculated in accordance with the methods and options laid down in Annexes III and IV and, as appropriate, Annex V, for all of their business activities.
− | (b) | the capital requirements, calculated in accordance with the methods and options laid down in Annexes III and IV and, as appropriate, Annex V, for all of their business activities. |
− | --- | --- |
+ (a) the trading-book business of such institutions does not normally exceed 5 % of their total business;
− | (a) | the trading-book business of such institutions does not normally exceed 5 % of their total business; |
− | --- | --- |
+ (b) their total trading-book positions do not normally exceed EUR 15 million; and
− | (b) | their total trading-book positions do not normally exceed EUR 15 million; and |
− | --- | --- |
+ (c) the trading-book business of such institutions never exceeds 6 % of their total business and their total trading-book positions never exceed EUR 20 million.
− | (c) | the trading-book business of such institutions never exceeds 6 % of their total business and their total trading-book positions never exceed EUR 20 million. |
− | --- | --- |
+ ### Article 19
− ### art_19
− 
− Article 19
+ ### Article 20
− ### art_20
− 
− Article 20
+ (a) the sum of the capital requirements contained in points (a) to (c) of Article 75 of Directive 2006/48/EC; and
− | (a) | the sum of the capital requirements contained in points (a) to (c) of Article 75 of Directive 2006/48/EC; and |
− | --- | --- |
+ (b) the amount laid down in Article 21 of this Directive.
− | (b) | the amount laid down in Article 21 of this Directive. |
− | --- | --- |
+ 
+ (a) investment firms that deal on own account only for the purpose of fulfilling or executing a client order or for the purpose of gaining entrance to a clearing and settlement system or a recognised exchange when acting in an agency capacity or executing a client order; and
+ 
+ b) investment firms:
+ 
+ (i) that do not hold client money or securities;
+ (ii) that undertake only dealing on own account;
+ 
+ (iii) that have no external customers;
− | (a) | investment firms that deal on own account only for the purpose of fulfilling or executing a client order or for the purpose of gaining entrance to a clearing and settlement system or a recognised exchange when acting in an agency capacity or executing a client order; and |
− | --- | --- |
+ (iv) the execution and settlement of whose transactions takes place under the responsibility of a clearing institution and are guaranteed by that clearing institution.
− | b) | investment firms:(i)that do not hold client money or securities;(ii)that undertake only dealing on own account;(iii)that have no external customers;(iv)the execution and settlement of whose transactions takes place under the responsibility of a clearing institution and are guaranteed by that …
− | --- | --- |
− | (i) | that do not hold client money or securities; |
− | (ii) | that undertake only dealing on own account; |
− | (iii) | that have no external customers; |
− | (iv) | the execution and settlement of whose transactions takes place under the responsibility of a clearing institution and are guaranteed by that clearing institution. |
− 
− ### art_21
+ ### Article 21
− Article 21
+ ## Section 2 / **Application of requirements on a consolidated basis**
− ### art_22
+ ### Article 22
− Article 22
+ (a) each EU investment firm in such a group uses the calculation of own funds set out in Article 16;
− | (a) | each EU investment firm in such a group uses the calculation of own funds set out in Article 16; |
− | --- | --- |
+ (b) all investment firms in such a group fall within the categories in Article 20(2) and (3);
− | (b) | all investment firms in such a group fall within the categories in Article 20(2) and (3); |
− | --- | --- |
+ (c) each EU investment firm in such a group meets the requirements imposed in Articles 18 and 20 on an individual basis and at the same time deducts from its own funds any contingent liability in favour of investment firms, financial institutions, asset management companies and ancillary services un…
− | (c) | each EU investment firm in such a group meets the requirements imposed in Articles 18 and 20 on an individual basis and at the same time deducts from its own funds any contingent liability in favour of investment firms, financial institutions, asset management companies and ancillary service…
− | --- | --- |
+ (d) any financial holding company which is the parent financial holding company in a Member State of any investment firm in such a group holds at least as much capital, defined here as the sum of points (a) to (h) of Article 57 of Directive 2006/48/EC, as the sum of the full book value of any holdin…
− | (d) | any financial holding company which is the parent financial holding company in a Member State of any investment firm in such a group holds at least as much capital, defined here as the sum of points (a) to (h) of Article 57 of Directive 2006/48/EC, as the sum of the full book value of any ho…
− | --- | --- |
+ ### Article 23
− ### art_23
− 
− Article 23
+ ### Article 24
− ### art_24
− 
− Article 24
+ (a) the sum of the capital requirements contained in points (a) to (c) of Article 75 of Directive 2006/48/EC; and
− | (a) | the sum of the capital requirements contained in points (a) to (c) of Article 75 of Directive 2006/48/EC; and |
− | --- | --- |
+ (b) the amount prescribed in Article 21 of this Directive.
− | (b) | the amount prescribed in Article 21 of this Directive. |
− | --- | --- |
+ (a) the sum of the capital requirements contained in points (a) to (c) of Article 75 of Directive 2006/48/EC; and
− | (a) | the sum of the capital requirements contained in points (a) to (c) of Article 75 of Directive 2006/48/EC; and |
− | --- | --- |
+ (b) the amount prescribed in Article 21 of this Directive.
− | (b) | the amount prescribed in Article 21 of this Directive. |
− | --- | --- |
+ ### Article 25
− ### art_25
− Article 25
− 
+ ## Section 3 / **Calculation of consolidated requirements**
− ### art_26
+ ### Article 26
− Article 26
+ (a) such undertakings have been authorised in a third country and either satisfy the definition of credit institution set out in Article 4(1) of Directive 2006/48/EC or are recognised third-country investment firms;
− | (a) | such undertakings have been authorised in a third country and either satisfy the definition of credit institution set out in Article 4(1) of Directive 2006/48/EC or are recognised third-country investment firms; |
− | --- | --- |
+ (b) such undertakings comply, on an individual basis, with capital adequacy rules equivalent to those laid down in this Directive; and
− | (b) | such undertakings comply, on an individual basis, with capital adequacy rules equivalent to those laid down in this Directive; and |
− | --- | --- |
+ (c) no regulations exist in the third countries in question which might significantly affect the transfer of funds within the group.
− | (c) | no regulations exist in the third countries in question which might significantly affect the transfer of funds within the group. |
− | --- | --- |
+ (a) there is a satisfactory allocation of capital within the group; and
− | (a) | there is a satisfactory allocation of capital within the group; and |
− | --- | --- |
+ (b) the regulatory, legal or contractual framework in which the institutions operate is such as to guarantee mutual financial support within the group.
− | (b) | the regulatory, legal or contractual framework in which the institutions operate is such as to guarantee mutual financial support within the group. |
− | --- | --- |
+ ### Article 27
− ### art_27
− 
− Article 27
+ ## Section 4 / **Monitoring and control of large exposures**
− ### art_28
+ ### Article 28
− Article 28
+ ### Article 29
− ### art_29
− 
− Article 29
+ (a) the excess — where positive — of an institution's long positions over its short positions in all the financial instruments issued by the client in question, the net position in each of the different instruments being calculated according to the methods laid down in Annex I;
− | (a) | the excess — where positive — of an institution's long positions over its short positions in all the financial instruments issued by the client in question, the net position in each of the different instruments being calculated according to the methods laid down in Annex I; |
− | --- | --- |
+ (b) the net exposure, in the case of the underwriting of a debt or an equity instrument; and
− | (b) | the net exposure, in the case of the underwriting of a debt or an equity instrument; and |
− | --- | --- |
+ (c) the exposures due to the transactions, agreements and contracts referred to in Annex II with the client in question, such exposures being calculated in the manner laid down in that Annex, for the calculation of exposure values.
− | (c) | the exposures due to the transactions, agreements and contracts referred to in Annex II with the client in question, such exposures being calculated in the manner laid down in that Annex, for the calculation of exposure values. |
− | --- | --- |
− 
− ### art_30
+ ### Article 30
− Article 30
− 
− ### art_31
+ ### Article 31
− Article 31
+ (a) the exposure on the non-trading book to the client or group of clients in question does not exceed the limits laid down in Articles 111 to 117 of Directive 2006/48/EC, those limits being calculated with reference to own funds as specified in that Directive, so that the excess arises entirely on …
− | (a) | the exposure on the non-trading book to the client or group of clients in question does not exceed the limits laid down in Articles 111 to 117 of Directive 2006/48/EC, those limits being calculated with reference to own funds as specified in that Directive, so that the excess arises entirely…
− | --- | --- |
+ (b) the institution meets an additional capital requirement on the excess in respect of the limits laid down in Article 111(1) and (2) of Directive 2006/48/EC, that additional capital requirement being calculated in accordance with Annex VI to that Directive;
− | (b) | the institution meets an additional capital requirement on the excess in respect of the limits laid down in Article 111(1) and (2) of Directive 2006/48/EC, that additional capital requirement being calculated in accordance with Annex VI to that Directive; |
− | --- | --- |
+ (c) where 10 days or less has elapsed since the excess occurred, the trading-book exposure to the client or group of connected clients in question shall not exceed 500 % of the institution's own funds;
− | (c) | where 10 days or less has elapsed since the excess occurred, the trading-book exposure to the client or group of connected clients in question shall not exceed 500 % of the institution's own funds; |
− | --- | --- |
+ (d) any excesses that have persisted for more than 10 days must not, in aggregate, exceed 600 % of the institution's own funds; and
− | (d) | any excesses that have persisted for more than 10 days must not, in aggregate, exceed 600 % of the institution's own funds; and |
− | --- | --- |
+ (e) institutions shall report to the competent authorities every three months all cases where the limits laid down in Article 111(1) and (2) of Directive 2006/48/EC have been exceeded during the preceding three months.
− | (e) | institutions shall report to the competent authorities every three months all cases where the limits laid down in Article 111(1) and (2) of Directive 2006/48/EC have been exceeded during the preceding three months. |
− | --- | --- |
+ ### Article 32
− ### art_32
− 
− Article 32
+ ## Section 5 / **Valuation of positions for reporting purposes**
− ### art_33
+ ### Article 33
− Article 33
+ ## Section 6 / **Risk management and capital assessment**
− ### art_34
+ ### Article 34
− Article 34
+ ## Section 7 / **Reporting requirements**
− ### art_35
+ ### Article 35
− Article 35
+ ## Section 1 / **Competent authorities**
− ### art_36
+ ### Article 36
− Article 36
+ ## Section 2 / **Supervision**
− ### art_37
+ ### Article 37
− Article 37
+ (a) references to Article 6 of Directive 2006/48/EC shall be construed as references to Article 5 of Directive 2004/39/EC;
− | (a) | references to Article 6 of Directive 2006/48/EC shall be construed as references to Article 5 of Directive 2004/39/EC; |
− | --- | --- |
+ (b) references to Article 22 and 123 of Directive 2006/48/EC shall be construed s references to Article 34 of this Directive; and
− | (b) | references to Article 22 and 123 of Directive 2006/48/EC shall be construed s references to Article 34 of this Directive; and |
− | --- | --- |
+ (c) references to Articles 44 to 52 of Directive 2006/48/EC shall be construed as references to Articles 54 and 58 of Directive 2004/39/EC.
− | (c) | references to Articles 44 to 52 of Directive 2006/48/EC shall be construed as references to Articles 54 and 58 of Directive 2004/39/EC. |
− | --- | --- |
+ ### Article 38
− ### art_38
− 
− Article 38
+ (a) for investment firms, those imposed in Article 54 and 58 of Directive 2004/39/EC; and
− | (a) | for investment firms, those imposed in Article 54 and 58 of Directive 2004/39/EC; and |
− | --- | --- |
+ (b) for credit institutions, those imposed in Articles 44 to 52 of Directive 2006/48/EC.
− | (b) | for credit institutions, those imposed in Articles 44 to 52 of Directive 2006/48/EC. |
− | --- | --- |
+ ## CHAPTER VII / ***Disclosure***
− ### art_39
+ ### Article 39
− Article 39
+ ## Section 1
− ### art_40
+ ### Article 40
− Article 40
+ ## Section 2 / **Powers of execution**
− ### art_41
+ ### Article 41
− Article 22
+ 1. The Commission shall decide on any technical adaptations in the following areas ►M1 —————** ◄ **:
− 1. The Commission shall decide on any technical adaptations in the following areas in accordance with the procedure referred to in Article 42(2):
+ (a) clarification of the definitions in Article 3 in order to ensure uniform application of this Directive;
− | (a) | clarification of the definitions in Article 3 in order to ensure uniform application of this Directive; |
− | --- | --- |
+ (b) clarification of the definitions in Article 3 to take account of developments on financial markets;
− | (b) | clarification of the definitions in Article 3 to take account of developments on financial markets; |
− | --- | --- |
+ (c) adjustment of the amounts of initial capital prescribed in Articles 5 to 9 and the amount referred to in Article 18(2) to take account of developments in the economic and monetary field;
− | (c) | adjustment of the amounts of initial capital prescribed in Articles 5 to 9 and the amount referred to in Article 18(2) to take account of developments in the economic and monetary field; |
− | --- | --- |
+ (d) adjustment of the categories of investment firms in Article 20(2) and (3) to take account of developments on financial markets;
− | (d) | adjustment of the categories of investment firms in Article 20(2) and (3) to take account of developments on financial markets; |
− | --- | --- |
+ (e) clarification of the requirement laid down in Article 21 to ensure uniform application of this Directive;
− | (e) | clarification of the requirement laid down in Article 21 to ensure uniform application of this Directive; |
− | --- | --- |
+ (f) alignment of terminology on and the framing of definitions in accordance with subsequent acts on institutions and related matters;
− | (f) | alignment of terminology on and the framing of definitions in accordance with subsequent acts on institutions and related matters; |
− | --- | --- |
+ (g) adjustment of the technical provisions in Annexes I to VII as a result of developments on financial markets, risk measurement, accounting standards or requirements which take account of Community legislation or which have regard to convergence of supervisory practices; or
− | (g) | adjustment of the technical provisions in Annexes I to VII as a result of developments on financial markets, risk measurement, accounting standards or requirements which take account of Community legislation or which have regard to convergence of supervisory practices; or |
− | --- | --- |
+ (h) technical adaptations to take account of the outcome of the review referred to in Article 65(3) of Directive 2004/39/EC.
− | (h) | technical adaptations to take account of the outcome of the review referred to in Article 65(3) of Directive 2004/39/EC. |
− | --- | --- |
+ 2. The measures referred to in paragraph 1, designed to amend non-essential elements of this Directive, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 42(2).
− 2. None of the implementing measures enacted may change the essential provisions of this Directive
+ ### Article 42
− ### art_42
− 
− Article 42
+ 2. Where reference is made to this paragraph, Article 5a(1) to (4) and Article 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.
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